15. Jessica won some money in a lottery and made some taxable gifts to her family. She needs your assistance filing [RS Form 709 this year. Which gift can be reduced by an annual exclusion? A. Jessica created a 2503(c) trust with $85,000 to fund her 10-year old nephew's future college education. B. Jessica paid a hospital $45,000 for her mother's medical bills that were not covered by health insurance. C. Jessica changed the deed on her home which added her son as a remainder beneficiary in the property. D. Jessica funded an irrevocable trust with $100,000 to provide discretionary supplemental support for her disabled brother. 16. Which technique matches a parent's objective? A. A parent who wants to save for a child's education in a tax-advantaged education account should consider establishing a 529 plan. B. A parent who wants to distribute income to one child and the principal to another should establish a UTMA account. C. A parent who wants to transfer real property to a child but does not want to pay for the expense of creating a trust should establish a UGMA account. D. A parent who wants to take an annual exclusion of $75,000 this year should establish a 2503(c) trust. 17. Gwen has a large estate, and she wants to transfer some of her wealth now to her two children by establishing separate trusts for each child. Her daughter Raquel is financially responsible and intends to become a business major in college. Her son Donny is spoiled and irresponsible and only has an interest in playing video games. What type of trust is best suited for Donny? A. A special needs trust B. A2503 (b) trust C. An irrevocable trust with a spendthrift provision D. A2503 (0) trust 18. Wally purchased a private annuity two years ago that would pay him $30,000 for life. At his death, the annuity will pay his wife, Deana, $15,000 per year for life. Wally died last week, and his executor must determine the value of his gross estate. Deana is age 64 and the 7520 rate is 6%. The IRS Single Life Factors at 6% for age 64 are: Annuity 10.1651, Life Estate 0.60990, and Remainder 0.39010